Weavering Founder Must Face Trial, Judge Rules

Mar 17 2014 | 3:43am ET

Accused hedge fund fraudster Magnus Peterson won’t be getting off on at least one technicality.

The founder of collapsed hedge fund Weavering Capital has lost his abuse of process claim against the U.K. Serious Fraud Office. Peterson, who is accused of defrauding investors of US$600 million, argued that the SFO improperly reopened its case against him. But, in spite of some concerns, Justice Andrew Smith said Peterson’s trial should proceed.

The SFO closed its initial probe into Weavering in 2011, two years after it collapsed. But the following year, Peterson was found liable for fraud in a London civil case, leading the SFO to reopen its investigation.

Peterson complained that the move was improper, given the submissions he made in the civil case, and because the case was not officially accepted by then-SFO director Richard Alderman. Smith acknowledged that it was “surprising and disturbing” that Alderman’s delegation of his responsibility to officially accept cases to a deputy “came in so casually that it was not even recorded,” but that it was valid all the same.

Peterson’s trial is set to begin in October.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.